What is 'escrow impound account' on a Delaware mortgage loan?
Why An account held by the lender collecting monthly amounts for property taxes and insurance, paid by the lender when due Is Correct
Answer B: An account held by the lender collecting monthly amounts for property taxes and insurance, paid by the lender when due
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
Key Finance Terms in This Question
People Also Study
Related Delaware Questions
- What is 'escrow impound account' and what does it cover in a Delaware mortgage?Finance
- Which of the following would appear on a seller's closing statement as a credit?Escrow & Title
- Paired sales analysis is used in appraisal to:Property Valuation
- A Delaware property is assessed at $175,000. If the tax rate is 1.4%, what is the monthly tax escrow amount (1/12 of annual taxes)?Real Estate Math
- A Delaware property generates $3,200 per month in rent. The mortgage payment (P&I) is $1,800/month, property taxes are $250/month, insurance is $100/month, and maintenance averages $200/month. What is the monthly cash flow?Real Estate Math
- What is the debt-to-income ratio for a Delaware borrower with $1,850 housing payment, $350 car payment, $250 student loan payment, and $6,500 gross monthly income?Real Estate Math
- A Delaware buyer obtains a 30-year, $300,000 mortgage at 6.5% annual interest. Using a monthly factor of $6.32 per $1,000, what is the approximate monthly principal and interest payment?Real Estate Math
- What does the annual percentage rate (APR) on a mortgage loan represent?Finance
Key Terms to Know
A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Math Concepts
Study This Topic
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →